The head of VTB, Andrey Kostin, argues that the rapid growth of cross-border payments between Russia and China makes it prudent for Russian banks to adopt the Chinese equivalent of a global payments network, the CIPS international wire transfer system. He pressed for action at the recent Russian-Chinese business forum, with coverage from TASS noting his emphasis on accelerating the shift toward this alternate settlement channel. Kostin’s position reflects a broader ambition within Russia to diversify payment rails and reduce exposure to Western-centric financial infrastructures in the face of evolving geopolitical and economic dynamics.
In Kostin’s assessment, the volume of cross-border transfers routed through VTB in the last quarter surged by well over two hundred percent. This marked increase, he suggested, underscores an urgent need for financial institutions to pivot toward a more resilient and China-aligned framework for international payments. The banking sector is watching closely as firms weigh the benefits of a system that can offer more direct settlement with Chinese counterparties, potentially cutting processing times and reducing friction in bilateral trade dealings. Such a transition would not only streamline operations for large corporations but could also ripple down to medium-sized and smaller enterprises that participate in trade flows across Eurasia.
According to Kostin, establishing a stable connection to CIPS would unlock advantages for a broad spectrum of exporters and importers in both nations. He pointed out that improved payment efficiency would support a growing ecosystem of joint ventures, contract manufacturing, and supply chains that increasingly depend on reliable, timely settlements. The potential positive effects extend beyond corporate balance sheets; they could enhance the competitiveness of Russian and Chinese suppliers in global markets by lowering transactional costs and improving cash flow management. The broader implication is a more integrated financial corridor between the two economies, with ripple effects on employment, regional development, and the willingness of small and medium enterprises to engage in cross-border commerce.
As the conversation around payment rails evolves, observers note that any shift toward CIPS would need to be accompanied by robust risk controls, clear regulatory alignment, and interoperability standards that ensure compatibility with existing domestic systems. Banks would likely invest in technology upgrades, staff training, and customer education to facilitate a smooth transition. While the strategic focus remains on enhancing bilateral trade efficiency, practitioners also anticipate that diversification of payment infrastructure could improve resilience against external shocks and sanctions-related uncertainties. Stakeholders across financial services, manufacturing, and logistics are watching how policy decisions, market demand, and international cooperation will shape the pace and scope of adoption in the years to come.